Get Out Of Debt With A Budget

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Got debt? Of course you do. Do you have a budget or plan on how to eliminate your debt? Probably not. What no budget? Okay the fact is the majority of people do not know how to get out of debt with a budget or even have a plan. Truthfully I think making a family or individual budget has been lost in the fast pace, ever changing technology world that has encompassed our lives in the last fifteen years. and the fact that people are just living day to day.

Budgeting bills, budgeting debt has become a mountain of a challenge when other factors are thrown in such as lost of income, sky rocketing cost of living, unexpected expenses, buying into the newest technology, and of course keeping… up with the Jones.

Have you stopped and figured out how much debt you have? What about the outrageous fees, higher interest rates and the extra costs that are attached? I think in fact if you stopped and worked out the numbers, depending on your personality, you would either sit down and cry, or get mad enough to do something positive about it and change your outcome.

American Consumers are in debt to the hefty amount of approximately $12 trillion dollars. On average a US household that is in debt on credit cards, carries approx $15,000.00.

Of course the numbers are forever changing, and the disgusting, never ending cycle of debt people are dealing with include other factors such things as:

  • Student loans – $1.20 trillion
  • Credit Card – $900 billion
  • Mortgages – $9 trillion

The cycle is suppose to go something like this, the higher the consumer spending is, helps turn the economy around. More spending leads to steady employment, job growth and higher income, which in turn leads to more spending.

But this “so called cycle” doesn’t always go as planned and borrowing more, paying on credit, going deeper into debt just to make ends meet seems to be part of life.

Let me open your eyes to the truth of consumer debt:

  • People do not take full responsibility for debt
  • People get into vicious cycles with high interest rates and cannot get out
  • You will absolutely spend more if you use credit cards
  • Most families do not make payments on time
  • Most people rob Peter to pay Paul, and also hide actual amounts from spouses/family members
  • Majority of households do not follow a regular monthly budget
  • People run to cash advance places, for Christmas money, for weekend adventures, etc
  • People without planned budgets have no idea what they are truly spending their money
  • Bankruptcy (I won’t even go there right now)
  • Yes, you are in debt, with no working budget….you certainly are not alone! Learn to take care of your situation.

Are you aware that a budget you commit to is one of the most important tools towards building a solid financial future?

A good idea is to keep track of every penny you spend for a whole month. Write it down on paper, log it your phone, I have even wrote notes on my hand until I got home to record my numbers.  And I do mean every penny, people do not take into consideration that everything adds up, such as that one donut in the morning, going to the vending machine on a daily basis, tolls, tip jars, running into the store to buy one thing (and end up spending $50 like I do sometimes).

For EVERYTHING you buy, send yourself a test message showing the amount spent, you might get tired of receiving your own messages!

Our society certainly lives in the moment. with little to no usage of any type of family budgeting. I believe that due to credit cards, payday places, and the media pushing items on us, we as a society do not know how to save, to purchase something at a later date, or to save for the future. Shall we just call it instant gratification? And think about it, we are programmed this way, to have it all now and pay the (outrageous) price later.

Having a budget and sticking with it is a priority to achieving your own financial security.

It will help you to:

  • Make a plan to pay down debt
  • Increase your income flow
  • Eliminate debt faster
  • Get organized with bills
  • Be more efficient in spending
  • Pay bills on time -this will cut down on late fees
  • Build up an emergency fund (only use it for an emergency)
  • Start a retirement account
  • Build a financial base for the future

Okay so I am sending a message to you right now…Learn to simplify your life! Learn how to budget, to understand, control and improve your own finances. You can get out of debt with a budget when using a proven simple method that absolutely shows you why you need a budget, how to organize your own budget and get control of your finances. Working with a budget, paying off your debt, saving more money, and breaking the paycheck to paycheck cycle should be high priority. Just remember, the hardest part is get started, so do it right now. Did you get that text message?

 


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24 Comments

  1. ches

    Some very useful information here about taking charge of your finances and getting yourself out of debt. To some of us the points made may seems obvious but many people appear to have much trouble controlling their money and find themselves in debt without really knowing how they got into the situation. I particularly liked the listing about consumer debt, it is quite an eye opener. I really hope people read your blog, it could help them realise just how and why they are in debt and how they can control themselves to get out of it. Great post. Ches

    Reply
    1. Angela

      obviously people have higher priorities of everyday living and will put things they don’t like to talk about on the back burner, people really need to get better educated and it really doesn’t take much to get started and start learning, check some of the sources out on my site here. Thanks for stopping by!

      Reply
  2. Lynne

    I don’t like reading articles like this, because it makes me feel uncomfortable! I have debt and I am so sick and tired of it.
    The problem is that when you get into a place where you are in debt you cannot get out easily. You are trapped doing exactly what you said, robbing Peter to pay Paul.
    I am busy trying to get myself out of debt once again and it is going ok so far but only because I have a plan and I am sticking to it,
    Thanks for sharing all these great tips and information

    Reply
    1. Angela

      I have been where you are now. Not knowing how I was going to pay for things, using one credit card to pay another, being embarrassed about not having things. I really hit a brick wall and had to fix many things but I put together a plan, kept reading about different ways that would help me, and I kept working on it. I am doing much better now, I have to say to you to work at it and put forward every effort it takes. Everyone’s situation is different so you do have to find what is best for you. Good Luck to you and don’t give up!!!

      Reply
  3. Lee Zhi Wei

    I must say that some of the biggest debts in one’s life would be education loan & housing loan (In my country Singapore). For me, not matter how I plan there’s always something which pops up last min & i have to go out of my budget to solve the issue.

    To get into a Private University education in my country, we have to fork out around $23,000 SGD. To repay that, I have no idea how long I’ll take but trust me, I’m still in the midst of that process.

    Its a vicious cycle which troubles almost everyone nowadays

    Reply
    1. Angela

      yes it is a vicious cycle, perhaps because people overspend, want instant gratification and do not do proper planning. I agree higher education cost is a serious issue and everyone needs to take the time to figure out a plan that will work best for them. I would have to say keep focused on your goals, (most people don’t even set goals) and use whatever avenue you can to minimize those loans.

      Reply
  4. John

    Angela,
    This comes at a good time. I did not have any income for two months this summer and have built a little credit card debt to get rid of. The month of October is the first month that I will not have to rob Peter to pay Paul.
    I will make a list as you suggest and see if that helps with making the budget for October.
    The high interest rate is something that really bothers me and I would like to have it gone by spring. I do have an emergency fund, I have not used any of it yet.
    John

    Reply
    1. Angela

      Well it seems like you are getting back on track with your finances. Keep your eye on your goal, and do not stop. Always look for opportunities and make good things happen for yourself

      Reply
  5. TheDopestMatrix

    A budget is really important but after reading the 10X rule- I dont think it’s going to help many get out of debt in the long run. One, they need to stick to it which is a challege for most.

    2. you MUST be growing your income by 5-10 percent every year or your budget does nothing, since inflation comes close to 3, lets say 4 percent to be conservation, you’d still end up losing money anyways. this is why you got to MAKE more money than try saving it.

    Remember there is tons of money to go around and if you’re not receiving it that is because something you are doing throughout the day is wrong. the harsh reality.

    TheDopestMatrix

    Reply
    1. Angela

      I agree with you that people need to figure out a way to earn extra money. A budget will only work for the money you do have, and if a person is deeply in debt and cannot get out it can sure be a nightmare. People need to be more aware of their fiancés, spending, saving and earning

      Reply
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  7. Derek Marshall

    Hi There.

    Very well written article, but lost my interest in the first sentence. Sorry but I dont have debt, non zero zip! never had any, quite frankly never will.

    Put simply, if you can’t afford it don’t buy it! Debt and finance, in true economic sense is what causes inflation.

    Reply
    1. Angela

      That is great that you have no debt, you are well ahead of the hundreds of millions of individuals that deal with this on a daily basis

      Reply
  8. Mike

    Other than maintaining good health, the single most important thing for retirees is to be in good shape financially. As you point out, debt can be a killer of an otherwise healthy financial situation. I see you advertise Dave Ramsey’s books. If your readers haven’t heard of him of read his books, they out to consider it – he’s great.

    Reply
    1. Angela

      Yes I have learned so many tips and ideas from him. I will continue to include information on Dave Ramsey in future articles. I know his advise and material information has benefitted millions of people seeking financial advice. He is an excellent mentor and advisor

      Reply
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  10. Todd

    Great post and so many people need to learn how to get out of debt and get on the right track to financial freedom.

    Granted, it can be tough depending on your monthly obligations and cost of living. But being conscience of your daily budget is a good start. And once you get out of debt, you can begin to start to prosper.

    Great post, great advice.

    Reply
    1. Angela

      I believe you said it all my friend! Now the hard part is getting people to take charge of their situations and act accordingly

      Reply
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  12. Michael

    Hey Angela, this article was very well written. There is a lot of solid information in and here and the facts you spoke about are very shocking. It so astonishing that students who want an eduction to have a better future just end up having to pay so much money back, and it totals up for everyone getting an education to be well over a trillion dollars. The tip you gave me about sending myself a text message every time I spend money is a really good idea and I think I will use it. Superb article, thank you very much for it.

    Reply
    1. Angela

      Hello Michael,

      Thanks for the comments, my goal is to get people more informed on their financial situation and to supply easy access to information and support that can help people to take control of their lives. Come back and visit often.

      Reply
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